Entrepreneurship

US-based PowerDFI acquires Nigerian blockchain startup, Naijacrypto.

PowerDFI, a recently founded Wyoming-based Blockchain financial startup, has acquired Naijacrypto, a Nigerian-owned cryptocurrency exchange focused initially on the African markets.

Naijacrypto, which recently expanded its offering to include multiple African countries and the United Kingdom, is one of the few exchanges with some presence in the Caribbean and has indicated an interest in expanding to other Latin American Countries.

Despite Naijacrypto’s growing Geographical scope, it seems PowerDFI’s main interest in Naijacrypto is its vast growing technical infrastructure which has been streamlined to meet not just retail Needs but also B2B use cases.

Commenting on the acquisition, Tim Webb, the CEO of PowerDFI, said: “Adding the work done by Naijacrypto to what we are building in PowerDFI fills out our technology suite to handle trillions in assets over the next decade.”

“We are set to lead the transition of the $57 trillion shadow banking market to the blockchain to improve transparency and security,” he added.

In an email to their users, Naijacrypto CEO, Chiagozie Iwu explained that the exchange was transitioning to a business model set to disrupt the financial markets while still maintaining aspects that have made their users stick to them for years.

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According to him, even though many structured products would be made available on the exchange, stablecoin-based remittance instruments would keep serving their initial purposes and even be made better by the support PowerDFI can harness.

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He added that Naijacrypto was set to leverage its already massive B2B networks in offering hedge instruments to businesses and individuals exposed to exchange rate risk.

What you should know

  • While there have been a couple of platforms currently aiding the tokenization of physical assets, PowerDFI takes these a step further by enabling lending collaterized by already tokenized assets, staking such physical assets and derivative creation against tokenized assets.
  • The Naijacrypto infrastructure would help offer exposures against utilities created on PowerDFI and also add liquidity to such utilities. A quick glance at the Beta version of PowerDFI shows that it leverages the Ethereum network in building out its services. This comes when Ethereum is transitioning to a more sustainable technological and validation method.
  • Collaborations between Nigerian and American Fintechs are not new. Even partnerships via acquisitions have been seen between both countries.
  • These Collaborations have been largely successful, and we hope that Naijacrypto sets a new precedent and opens the doors for even more cross-border Fintech mergers.
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Source: nairametrics

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